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- W4383879069 abstract "A non-Bayesian decision maker forms posterior beliefs through an—ever so slightly—violation of Bayes’ rule. A naive equilibrium is a competitive equilibrium for a multiperiod complete markets economy such that every economic agent—Bayesian or non-Bayesian—assumes that all economic agents are Bayesian decision makers. If all agents are indeed Bayesian decision makers, the naive equilibrium coincides with the standard concept of an arbitrage-free equilibrium for which dynamic price ratios are comprehensively pinned down as the equilibrium price ratios of Arrow–Debreu securities in a static economy. If at least one agent is a non-Bayesian decision maker, however, some equilibrium price ratios will change over time. These changing price ratios imply the existence of unrealized dynamic arbitrage opportunities in a naive equilibrium with non-Bayesian decision makers." @default.
- W4383879069 created "2023-07-12" @default.
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- W4383879069 date "2023-09-01" @default.
- W4383879069 modified "2023-10-05" @default.
- W4383879069 title "Unrealized arbitrage opportunities in naive equilibria with non-Bayesian belief processes" @default.
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- W4383879069 doi "https://doi.org/10.1016/j.mathsocsci.2023.07.001" @default.
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